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    Michigan Income Tax Withholding and Payroll Information

    Compliance with state taxes is required for every employer. Learn about the flat rate, deductions, and automation options below.

    December, 17th 2024

    A team using ez1095 software for small businesses

    Each state has unique requirements for income tax withholding. Below you will find the details for Michigan’s 2025 withholding structure, which utilizes a flat tax rate, along with applicable standard deductions and allowances.

    Employers must also adhere to federal income tax withholding rules. More information can befound here about federal rates.

    Alternatively, employers can automatically calculate payroll withholding using ezPaycheck.

    Learn More

    Table of Contents

    Michigan Tax Information

    General Information
    State AbbreviationMI
    State Tax Withholding State Code26
    Acceptable Exemption FormMI W-4 or federal W-4
    Basis For WithholdingState Standard Deduction and Allowances
    Acceptable Exemption Data0/ Number of Allowances
    TSP DeferredYes
    Special Coding

    Determine the Total Number Of Allowances field as follows:

    Second and Third Positions - Enter the number of exemptions claimed (Line 6 on the MI-W4).

    Additional InformationNone

    Deductions, Allowances, Taxes, and Exemptions

    Standard Deduction Table (2025)
    Filing StatusStandard Deduction
    Single, Married (Dual Income), Other$5,800
    Head of Household$5,800
    Married Filing Jointly (Single Income)$5,800
    Tax Withholding Table: All Filing Statuses
    If Taxable Income IsTax Withholding
    OverBut Not OverRateOf Excess Over
    $0and over$0+4.25%$0

    Since Michigan uses a flat tax rate, the tax withholding is simply 4.25% of the taxable income.

    How to Calculate Michigan Taxes

    1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
    2. Subtract the nontaxable biweekly Federal Health Benefits Plan payments (includes dental, vision insurance program, and flexible spending account - health care and dependent care deductions) from the amount computed in Step 1.
    3. Add taxable fringe benefits (e.g., taxable life insurance) to the amount computed in Step 2 to obtain the adjusted gross biweekly wages.
    4. Multiply the adjusted gross biweekly wages by 26 to obtain the gross annual wages.
    5. Subtract the appropriate standard deduction (based on filing status) from the gross annual wages to determine the taxable income.
    6. Calculate the gross tax by applying the flat 4.25% rate to the taxable income:
      Gross Tax = Taxable Income × 4.25%
    7. Add any additional withholding (if applicable) to the net tax.
    8. Divide the final annual Michigan tax withholding by 26 to obtain the biweekly Michigan tax withholding.

    Michigan’s flat tax rate simplifies the tax calculation process. If you prefer to automate these calculations, consider using ezPaycheck.

    Learn More
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    Automate Payroll with ezPaycheck

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